Not Just Professors and Doctors: Who Gets Tax Incentives with the New NHR 2.0

The original Non-Habitual Resident (NHR) programme, which offered tax advantages to individuals who had not previously been tax residents in Portugal in the preceding five years, is no longer available.

However, a new programme for expats has been introduced, offering tax reductions to a range of professionals who may find strong career and savings opportunities in the country. Read on to find out whether your occupation qualifies under the new rules.

The NHR (Non-Habitual Resident) programme was introduced in 2009 by the Portuguese government, with the goal of boosting the economy by offering preferential tax treatment for 10 years to individuals who became tax residents in Portugal.

One of the most attractive features of this regime was a flat 20% rate, instead of the regular progressive rates that can reach up to 53%. After a few alterations that took place in 2019, the programme eventually came to an end in 2023.

In 2024, Portugal introduced a new tax regime aimed at attracting new tax residents in specific qualified professions.

Although the official name of the initiative is IFICI (Incentivo Fiscal à Investigação Científica e Inovação, or Tax Incentive for Scientific Research and Innovation), it is commonly referred to as “NHR 2.0”, as it offers similar benefits to the previous regime, such as the fixed 20% tax rate on locally generated income.

However, the official name of the programme can be misleading, as you do not have to be an academic researcher or innovation specialist to qualify. The list of eligible professions is actually quite extensive, and you may well be eligible.

Here’s the good news: it’s not just specific activities that qualify for IFICI, but also a wide range of job roles. Will you be working in Portugal as a director or executive manager? If so, you may be eligible to apply for the new regime and benefit from reduced taxation for up to 10 years. Here are some examples of eligible roles:

These roles must be carried out within companies that meet specific criteria. This includes businesses that benefit from the Tax Incentive Scheme for Investment (RFAI – Regime Fiscal de Apoio ao Investimento), either in the year they commenced operations or within the preceding five financial years.

Alternatively, eligibility may apply to industrial or service companies that export at least 50% of their turnover in the year they began operating or in either of the two preceding years, and whose main activity falls within sectors such as:
 

As you can see, the list is extensive. In addition, many roles may qualify if they meet further criteria. For example, if you are joining a startup, there is a strong chance you may be eligible.

However, the company must typically have fewer than 10 years of activity, fewer than 250 employees, an annual turnover of €50 million or less, and meet at least four additional requirements.

Other eligible professions may include hotel, restaurant, or retail managers; finance and accounting specialists; and professionals in the film, theatre, television, and radio industries, such as directors, producers, and stage managers. Depending on your role, you may also need to demonstrate a certain level of professional experience.

Ultimately, the key point is not to be discouraged by terms such as “innovation”, “research”, or “scientific”. As shown above, IFICI applies to a much broader range of professions than the name suggests. It is worth consulting a specialised accountant to determine whether your role in Portugal could allow you to benefit from meaningful tax savings.

There are additional criteria to consider—but the potential 10 years of tax savings make the process worthwhile. If you have confirmed that your role and employer or sector qualify, you will also need to meet the following conditions:

It is also important to note that you will need to submit documentation proving your eligibility, and that the IFICI benefits can only be granted once. While the process involves some administrative work, the long-term advantages can make your relocation to Portugal significantly more beneficial.

The benefits of moving to Portugal extend far beyond tax incentives. However, unlocking the country’s full potential is much easier with the right local partner. This is where Portugal Homes can make a real difference.

We are not only real estate experts offering curated property listings but also provide comprehensive, end-to-end support to guide you through every stage of your relocation.

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